Comments on: How “Sinful” Budgeting Hurts Business in Missouri http://www.showmedaily.org/2010/08/how-sinful-budgeting-hurts.html Advancing liberty with responsibility by promoting market solutions for Missouri public policy Thu, 24 May 2012 16:17:46 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: vroman http://www.showmedaily.org/2010/08/how-sinful-budgeting-hurts.html/comment-page-1#comment-7766 vroman Wed, 18 Aug 2010 23:30:38 +0000 http://www.showmedaily.org/?p=21577#comment-7766 Raising the tax rates on “sin” products would be particularly harmful to convenience and grocery stores close to the state border, because they would lose business to states that assess lower tax rates relative to Missouri. It cuts both ways. Even if the border state still has higher taxes after our increase, then we would be enticing fewer of THEIR citizens to cross the border to our convenience stores, on the margin. Raising the tax rates on “sin” products would be particularly harmful to convenience and grocery stores close to the state border, because they would lose business to states that assess lower tax rates relative to Missouri.

It cuts both ways. Even if the border state still has higher taxes after our increase, then we would be enticing fewer of THEIR citizens to cross the border to our convenience stores, on the margin.

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